Reclaiming a payment after a Targeted Compliance Framework (TCF) non-compliance cancellation 001-18030210

The Targeted Compliance Framework (TCF) is used by Employment Services providers to encourage job seekers to meet their mutual obligation requirements.

A TCF non-compliance cancellation occurs when a job seeker:

• fails to accept or commence suitable work
• voluntarily leaves suitable work without reasonable excuse while in receipt of participation payment
• is dismissed due to misconduct as a worker from suitable employment while in receipt of a participation payment, or
• incurs a third financial penalty for persistently committing mutual obligation failures

When payment is cancelled, the job seeker enters a post cancellation non-payment period of 4 weeks. Cancellation of payment for these reasons will require the job seeker to re-claim payment.

Job seekers can reclaim payment at any stage during or following the post cancellation non-payment period. The job seeker will generally be subject to RapidConnect. The start date of a return to payment may be affected by the post cancellation non-payment period end date.

Where a job seeker returns to payment following a post cancellation non-payment period, the Job Plan that was in place prior to the cancellation will remain in force until another Job Plan is created.

Participation payments are cancelled if the job seeker fails to comply with re-engagement requirements, issued by an employment services provider. This includes job seekers who are required to contact Services Australia to arrange a Capability Assessment. Job seekers issued with a re-engagement requirement must do so within 29 days or payment will cancel.

When a job seeker's payment is cancelled 'Customer failed to re-engage (CDR)', they will generally need to reclaim. Further information is available within Re-engaging job seekers – Targeted Compliance Framework.

When a job seeker's participation payment re-commences, the Employment Services System (ESS) will identify which TCF compliance zone the job seeker will return to. They will generally return to the zone they were in prior to the cancellation.

Job seekers, who reclaim payment immediately after a cancellation for persistent non-compliance, will return to the penalty zone. When this occurs, a new failure group commences, this means if a further mutual obligation failure is applied a 50% payment reduction occurs, a second mutual obligation failure will reduce payment by 100% and so on.

However, job seekers will return to the green zone when they were in the:

• financial penalty zone and their payment has been cancelled for 3 active months or more, or
• warning zone and their payment has been cancelled for 6 active months or more

When a Capability Interview or Capability Assessment was triggered but not completed prior to cancellation, the Employment Services System (ESS) will determine if the assessment is still required.

When a Capability Assessment is retriggered, the job seeker should be referred to the Participation Solutions Team (PST) to have the Capability Assessment conducted. The job seeker will not be able to report until the Capability Assessment is completed.